Hong Kong to cut taxes on salaries
Thursday, 11 October 2007
HONG KONG Oct 10 (MarketWatch): Hong Kong Chief Executive Donald Tsang pledged to cut corporate profit and salaries taxes Wednesday as part of a wider goal to return wealth to the populace at time of budget surpluses.
In the first policy address of his second term in office, Tsang said stronger-than-expected revenue enabled him to cut the salaries tax for top earners to 15% from 16%, while the corporate profits tax would fall to 16.5% from 17.5%. The tax cuts are to take effect in the fiscal year beginning April 1.
Tsang said the two measures would cost the government HK$5 billion annually.
"Hong Kong's economy is back on track, registering rapid growth over the past 15 quarters," Tsang said.
"I am confident because Hong Kong people have overcome the confusion and anxiety about their future, which was once shrouded in uncertainty," he added, making reference to the 10-year period since Hong Kong reverted to Chinese sovereignty in July 1997.
He added the budget surplus for the 2007 financial year was about HK$3.5 billion ($451.06 million) higher than earlier estimates.
Tsang also said he would waive property taxes in the last quarter of the 2008 financial year, extending a suspension of the tax from the first two quarters.
He added the temporary waiver would cost the government HK$2.6 billion in lost revenue.
Tsang also said he needed more time to study the results of a review into wages for security guards and cleaners before backing minimum wage legislation.
In the first policy address of his second term in office, Tsang said stronger-than-expected revenue enabled him to cut the salaries tax for top earners to 15% from 16%, while the corporate profits tax would fall to 16.5% from 17.5%. The tax cuts are to take effect in the fiscal year beginning April 1.
Tsang said the two measures would cost the government HK$5 billion annually.
"Hong Kong's economy is back on track, registering rapid growth over the past 15 quarters," Tsang said.
"I am confident because Hong Kong people have overcome the confusion and anxiety about their future, which was once shrouded in uncertainty," he added, making reference to the 10-year period since Hong Kong reverted to Chinese sovereignty in July 1997.
He added the budget surplus for the 2007 financial year was about HK$3.5 billion ($451.06 million) higher than earlier estimates.
Tsang also said he would waive property taxes in the last quarter of the 2008 financial year, extending a suspension of the tax from the first two quarters.
He added the temporary waiver would cost the government HK$2.6 billion in lost revenue.
Tsang also said he needed more time to study the results of a review into wages for security guards and cleaners before backing minimum wage legislation.